IndusInd Bank Upgraded to 'Hold' by MarketsMOJO, Strong Fundamentals and Attractive Valuations

IndusInd Bank, a largecap private bank, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on the bank's strong long-term fundamental strength, with a Tier 1 Capital Adequacy Ratio of 15.65%. This signifies that the bank has a robust due diligence system in place when giving out loans.
Furthermore, the bank has shown healthy long-term growth, with its Net Interest Income (excluding other income) growing at an annual rate of 13.14% and its Net Profit at 14.31%. Additionally, with a ROA of 1.5, the stock is currently trading at a discount compared to its average historical valuations, making it a very attractive option for investors.

However, the stock has faced negative results in the recent quarter, with its Operating CF (Y) at its lowest at Rs -16,843.41 Cr and its PAT (Q) falling by -39.2%. The Operating Profit to Net Sales (Q) has also been at its lowest at 11.10%.

Technically, the stock is currently in a mildly bearish range, with its technical trend deteriorating since 16-Oct-24 and generating -20.98% returns since then. The MACD and KST technical factors are also bearish, indicating a potential downward trend in the stock's performance.

Moreover, 45.48% of the promoter shares are pledged, which could put additional downward pressure on the stock prices in falling markets.

Overall, while IndusInd Bank has shown strong long-term fundamentals and attractive valuations, its recent negative results and technical factors suggest a hold on the stock for now. Additionally, its below par performance in the long term as well as near term, with -26.63% returns in the last year and underperformance compared to BSE 500 in the last 3 years, 1 year, and 3 months, also support the 'Hold' recommendation.